Polk-Burnett gives credit where credit is due
One of the things that makes an electric cooperative like Polk-Burnett different from an investor-owned utility is that a cooperative is not in business to make a profit. Electric cooperatives exist to serve their members.
That's why Polk-Burnett members who purchase electricity from the cooperative ultimately receive capital credit refunds. Capital credits are financial allotments that are earned by members from margins. Margins are the small percentage of additional funds collected from members through their regular monthly payments for electric service that are not needed for the immediate operations of the cooperative. As those margins are collected, they are reinvested in the cooperative for a number of years to pay for long-term projects like replacing or building electric lines, but capital credits equal to those margins are allocated to members for eventual payment.
Why does Polk-Burnett collect more revenue than it needs to pay its expenses?
Every business needs to have a margin of funds to ensure that it can always meet its expenses. Also, Polk-Burnett must borrow money for the long-term investment in building its electric lines, and those who finance those loans need to know that the cooperative is financially stable.
However, unlike an investor-owned utility, Polk-Burnett does not collect excess revenue to pay a profit to shareholders. All Polk-Burnett members are shareholders, so when profits exceed expenses, the difference is credited to you.
Why was my neighbor's credit refund bigger (or smaller)?
Capital credits are based on your total payments to the cooperative for kilowatt-hours of energy purchased, including the fixed charges. If you received a smaller credit than your neighbor, it's because you used and paid for less electricity during the period in which the capital credit allocation was earned.
Why didn't I get a capital credit refund?
If you didn't receive a capital credit refund this year, it's because you joined the cooperative within the past 20 years or so. Capital credits represent a return on your long-term membership investment in the cooperative and new members will be eligible to begin receiving refunds on the allocations they have earned in about 40 years. Capital credits are refunded when the cooperative's financial position permits and the refund cycle is determined by the board of directors elected by our membership to represent their best interests.
Even if you didn't receive a refund this year, you will earn a capital credit allocation for all years that you are a Polk-Burnett member. Once you're eligible for a refund on those allocations, you'll receive them even if you're no longer receiving electric service from Polk-Burnett, if you've let us know where to find you. It is your long-term benefit of Polk-Burnett membership.
How do I receive my capital credit refund?
Once you're eligible to begin receiving refunds, in approximately 40 years for new members, you will receive your credit once a year as a reduction in your electric bill if you remain a member of the cooperative. If you're no longer a member, a check will be mailed to you, if we have your current address.
Unclaimed capital credits fund Polk-Burnett's Cooperative Citizen-Scholar Awards program, that focuses on service, not academic performance. It recognizes the cooperative spirit and community service of sons and daughters of Polk-Burnett members that are graduating from high school in the upcoming year and plan to attend a vocational school, college or university with $1,000 scholarships. Since 1987, Polk-Burnett has awarded more than $360,000 to 455 children of Polk-Burnett members who have made life better for others by helping their families, communities and fellow students. This program does not affect the electric rates of members.